Gank A pays 2% interest compounded snnually on deposits, while Bask a pays 1.25% compounded daily. a. Bosed on the EAR (or EFFPb), which bank should you use? 1. You would choose Bank A because its EAR. is higher: It. You would choose Hank. 8 because its EAR is higher, III. You would cheore Bank A because its nominal interest rate is higher. IV, You would choose Bank. B because its narningl interest rete is higher, V. Yed are indifirerent between the benks and your decision will be based upon which one offers you a gift for epening an aceount. on depost during an entire compounding period in order to rective any interest. withdrawal during the yeef, then Benk A might be preferable. year, then Bank a might be preferable. withdrawal during the year, then Bank A might be preferable. withdrawal during the yeag, then Bank 5 might be preferable. aithdrakal during the year, then Bank. A moht be preferable